Inheriting credit card debt- Will my husband inherit my debt when I die?

Skitty17

I have just been told I have advanced cancer and have outstanding credit card debts. The cards are solely in my name. When I die, will my husband be liable for these debts or will they get written off? We have a joint mortgage with at least 15 years left to pay a considerable sum back and no joint savings...:(

dalesrider

Any debt on a credit card would have to be paid out of your estate. It would not be passed to your husband.
So your husband may have to fill in some forms.

Is there any form of life cover on the mortgage?

I know no words can assist in what is to come. But I do wish you well.

adouglasmhor

Sorry to hear that.

[Deleted User]

Money from your estate is used in the following order.

Funeral.

Taxes.

Secured Debts.

Unsecured Debts.

If, by the time you get to Unsecured Debts, there is no money left, then the CC company/companies are out of luck.

Some less scrupulous companies have been known to pressure the next of kin into taking a loan, to cover the debt, but there is no legal basis for this, so your OH should refuse any such proposal.

lisyloo

Sorry to hear of your situation.

Do you have any life ins? Any private pension funds or pension scheme? or any death benefits at work?

If there is nothing in your estate then the credit card company will have to write it off and cannot pursue your husband.

If you are joint tennants then I believe your half of the house will pass to him outside of the estate but you may wish to get professional advice on that.

Good luck with your treatment.

Paul_the_Painter

Probably worth getting professional advice. May be worthwhile to transfer the house now into solely your husband's name (think the mortgage company would have to give their agreement though) I believe that some CC companies, will take the view that your 50% of the house forms part of your estate, and place a charge against the house. They can't force a sale of the house though. Some wouldn't bother to do that though, often depends on the level of debt.

pqrdef

But if you leave your estate effectively bankrupt, your creditors might want to look at whether you may have deliberately transferred away your assets to avoid paying your debts.

Skitty17

Thanks so much for your advice. I will indeed visit a financial adviser to go through everything. I just want to safeguard my poor husband as much as possible, who will be left with 3 young children...the poor guy will have enough to deal with...